Yellen tells graduates: Show grit like Bernanke

Federal Reserve Chairwoman Janet Yellen on Wednesday delivered what you’d expect from a commencement speech: graduates, she said, should “tend the fires of curiosity,” listen to others, and show grit in the face of failure. Yellen reminded New York University students in Yankee Stadium that even Babe Ruth, Lou Gehrig and Joe DiMaggio failed most of the time they stepped to the plate, according to a text of her remarks.

And what example did Yellen find for such an inspirational beacon of bravery?

Why, her predecessor, Ben Bernanke.

My predecessor at the Fed, Chairman Ben Bernanke, demonstrated such courage, especially in his response to the threat of the financial crisis. To stabilize the financial system and restore economic growth, he took courageous actions that were unprecedented in ambition and scope. He faced relentless criticism, personal threats, and the certainty that history would judge him harshly if he was wrong. But he stood up for what he believed was right and necessary. Ben Bernanke’s intelligence and knowledge served him well as Chairman. But his grit and willingness to take a stand were just as important. I hope you never are confronted by challenges this great, but you too will face moments in life when standing up for what you believe can make all the difference.

A quick recap of the steps the Fed took during the crisis include cutting interest rates as far as they go, engaging in unprecedented levels of bond buying, and opening an array of emergency lending programs. These programs unquestionably helped to save the financial system, though debate rages over the lackluster economic growth since then.

Whether the timing of Yellen’s comments are by design or by coincidence isn’t clear. And in praising Bernanke, she clearly to some degree is praising herself, seeing as the two were and are seen as joined by the hip in terms of policy preferences.